Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | usap | ||
Entity Registrant Name | UNIVERSAL STAINLESS & ALLOY PRODUCTS INC | ||
Entity Central Index Key | 931,584 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 52,785,000 | ||
Entity Common Stock, Shares Outstanding | 7,477,400 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Consolidated Statement of Operations [Abstract] | |||
Net sales | $ 180,660 | $ 205,560 | $ 180,768 |
Cost of products sold | 171,065 | 173,538 | 166,888 |
Gross margin | 9,595 | 32,022 | 13,880 |
Selling, general and administrative expenses | 19,406 | 21,122 | 17,885 |
Goodwill impairment | 20,268 | ||
Operating (loss) income | (30,079) | 10,900 | (4,005) |
Interest expense and other financing costs | (2,890) | (3,679) | (3,042) |
Other income (expense) | 153 | (22) | 481 |
(Loss) income before income taxes | (32,816) | 7,199 | (6,566) |
(Benefit) provision for income taxes | (12,144) | 3,149 | (2,504) |
Net (loss) income | $ (20,672) | $ 4,050 | $ (4,062) |
Net (loss) income per common share - Basic | $ (2.92) | $ 0.58 | $ (0.58) |
Net (loss) income per common share - Diluted | $ (2.92) | $ 0.57 | $ (0.58) |
Weighted average shares of common stock outstanding | |||
Basic | 7,069,954 | 7,031,539 | 6,950,976 |
Diluted | 7,069,954 | 7,116,431 | 6,950,976 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 112 | $ 142 |
Accounts receivable (less allowance for doubtful accounts of $249 and $17, respectively) | 17,683 | 29,057 |
Inventory, net | 83,373 | 101,070 |
Other current assets | 2,584 | 2,681 |
Total current assets | 103,752 | 132,950 |
Property, plant and equipment, net | 193,505 | 199,795 |
Goodwill | 20,268 | |
Other long-term assets | 1,298 | 1,861 |
Total assets | 298,555 | 354,874 |
Current liabilities: | ||
Accounts payable | 11,850 | 25,009 |
Accrued employment costs | 3,256 | 6,011 |
Current portion of long-term debt | 3,000 | 3,000 |
Other current liabilities | 640 | 861 |
Total current liabilities | 18,746 | 34,881 |
Long-term debt | 74,137 | 83,875 |
Deferred income taxes | 20,666 | 32,425 |
Other long-term liabilities | 29 | 63 |
Total liabilities | $ 113,578 | $ 151,244 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Senior preferred stock, par value $0.001 per share; 1,980,000 shares authorized; 0 shares issued and outstanding | ||
Common stock, par value $0.001 per share; 20,000,000 shares authorized, respectively; 7,404,193 and 7,371,018 shares issued, respectively | $ 7 | $ 7 |
Additional paid-in capital | 54,829 | 52,810 |
Retained earnings | 132,431 | 153,103 |
Treasury stock, at cost; 292,855 common shares held, respectively | (2,290) | (2,290) |
Total stockholders' equity | 184,977 | 203,630 |
Total liabilities and stockholders' equity | $ 298,555 | $ 354,874 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 249 | $ 17 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,980,000 | 1,980,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,404,193 | 7,371,018 |
Treasury stock at cost, common shares held | 292,855 | 292,855 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities: | |||
Net (loss) income | $ (20,672) | $ 4,050 | $ (4,062) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 18,608 | 17,476 | 16,280 |
Deferred income tax | (12,060) | 2,935 | (2,998) |
Share-based compensation expense, net | 1,865 | 2,082 | 1,827 |
Goodwill impairment | 20,268 | ||
Changes in assets and liabilities: | |||
Accounts receivable, net | 11,374 | (7,610) | 3,334 |
Inventory, net | 15,929 | (20,075) | 11,934 |
Accounts payable | (13,009) | 10,721 | 3,678 |
Accrued employment costs | (2,755) | 2,581 | (1,241) |
Income taxes | (248) | 514 | 494 |
Other, net | (130) | 215 | (340) |
Net cash provided by operating activities | 19,170 | 12,889 | 28,906 |
Investing Activity: | |||
Capital expenditures | (9,551) | (11,173) | (11,789) |
Proceeds from insurance recovery | 218 | ||
Net cash used in investing activity | (9,333) | (11,173) | (11,789) |
Financing Activities: | |||
Borrowings under revolving credit facility | 73,515 | 103,785 | 76,784 |
Payments on revolving credit facility | (80,253) | (103,706) | (92,230) |
Payments on term loan facility | (3,000) | (3,000) | (1,500) |
Proceeds from the issuance of common stock | 455 | 1,040 | 1,117 |
Payment of deferred financing costs | (584) | (1,165) | |
Purchase of treasury stock | (137) | ||
Net cash used in financing activities | (9,867) | (1,881) | (17,131) |
Net decrease in cash | (30) | (165) | (14) |
Cash at beginning of period | 142 | 307 | 321 |
Cash at end of period | 112 | 142 | 307 |
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid, net of amount capitalized | 2,384 | 3,046 | $ 2,534 |
Income taxes paid (refunded), net | $ 165 | $ (318) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
Stockholders' Equity, Beginning Balance at Dec. 31, 2012 | $ 7 | $ 46,744 | $ 153,115 | $ (2,153) | |
Shares outstanding, Beginning Balance (shares) at Dec. 31, 2012 | 6,958,312 | ||||
Treasury shares, Beginning Balance at Dec. 31, 2012 | 288,681 | ||||
Common stock issuance under Employee Stock Purchase Plan | 269 | ||||
Common stock issuance under Employee Stock Purchase Plan (shares) | 10,520 | ||||
Exercise of stock options | 848 | ||||
Exercise of stock options (shares) | 55,625 | ||||
Issuance of restricted common stock, shares | (3,000) | ||||
Share-based compensation | 1,827 | ||||
Purchase of treasury stock | $ (137) | ||||
Purchase of treasury stock (shares) | (4,174) | 4,174 | |||
Net income (loss) | (4,062) | $ (4,062) | |||
Stockholders' Equity, Ending Balance at Dec. 31, 2013 | $ 7 | 49,688 | 149,053 | $ (2,290) | |
Shares outstanding, Ending Balance (shares) at Dec. 31, 2013 | 7,017,283 | ||||
Treasury shares, Ending Balance at Dec. 31, 2013 | 292,855 | ||||
Common stock issuance under Employee Stock Purchase Plan | 276 | ||||
Common stock issuance under Employee Stock Purchase Plan (shares) | 11,380 | ||||
Exercise of stock options | 764 | ||||
Exercise of stock options (shares) | 49,500 | ||||
Share-based compensation | 2,082 | ||||
Net income (loss) | 4,050 | 4,050 | |||
Stockholders' Equity, Ending Balance at Dec. 31, 2014 | $ 7 | 52,810 | 153,103 | $ (2,290) | $ 203,630 |
Shares outstanding, Ending Balance (shares) at Dec. 31, 2014 | 7,078,163 | ||||
Treasury shares, Ending Balance at Dec. 31, 2014 | 292,855 | 292,855 | |||
Common stock issuance under Employee Stock Purchase Plan | 188 | ||||
Common stock issuance under Employee Stock Purchase Plan (shares) | 15,675 | ||||
Exercise of stock options | 267 | ||||
Exercise of stock options (shares) | 17,500 | 17,500 | |||
Tax impact on RSUs vested and options exercised | (301) | ||||
Share-based compensation | 1,865 | ||||
Net income (loss) | (20,672) | $ (20,672) | |||
Stockholders' Equity, Ending Balance at Dec. 31, 2015 | $ 7 | $ 54,829 | $ 132,431 | $ (2,290) | $ 184,977 |
Shares outstanding, Ending Balance (shares) at Dec. 31, 2015 | 7,111,338 | ||||
Treasury shares, Ending Balance at Dec. 31, 2015 | 292,855 | 292,855 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1: Significant Accounting Policies Basis of Consolidation . The consolidated financial statements include the accounts of Universal Stainless & Alloy Products, Inc. and its wholly-owned subsidiaries (collectively, “we,” “us,” “our,” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. We have no interests in any unconsolidated entity. Use of Estimates . The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. The estimates and assumptions used in these consolidated financial statements are based on known information available as of the balance sheet date. Actual results could differ from those estimates. Concentration of Credit Risk . We limit our credit risk on accounts receivable by performing ongoing credit evaluations and, when deemed necessary, require letters of credit, guarantees or cash collateral. During 2015, we had one customer which accounted for more than 16% of our total net sales and for 7% of our total accounts receivable balance. During 2014, we had one customer that accounted for more than 18% of our total net sales and for 11% of our total accounts receivable balance . During 2013, we had two customers which each accounted for more than 10% , and collectively for 26% , of our total net sales. Accounts Receivable and Allowance for Doubtful Accounts . Accounts receivable are presented net of the allowance for doubtful accounts on our consolidated balance sheets. We market our products to a diverse customer base, primarily throughout the United States. During the years ended December 31, 2015, 2014 and 2013 , we derived 9% , 7% and 6% , respectively, of our net sales from markets outside of the United States. The allowance for doubtful accounts includes specific reserves for the value of outstanding invoices issued to customers that are deemed potentially not collectible. Receivables are charged-off to the allowance when they are deemed to be uncollectible. Bad debt expense, net of recoveries for the years ended December 31, 2015, 2014 and 2013 was $ 239,000 , $ 18,000 and $ 30,000 , respectively. Inventories . Inventories are stated at the lower of cost or market with cost principally determined by the weighted average cost method. Such costs include the acquisition cost for raw materials and supplies, direct labor and applied manufacturing overhead within the guidelines of normal plant capacity. We reserve for slow-moving inventory and inventory that is being evaluated under our quality control process. The reserves are based upon management’s expected method of disposition. The net change in inventory reserves for the year ended December 31, 2015 , was a decrease of $ 136,000 , primarily due to the dispositi on of slow moving material that was no longer considered sellable and was returned to our melt shop. The net change in inventory reserves for the years ended December 31, 2014 and 2013 was a $ 603,000 decrease and a $ 617,000 increase, respectively. Included in inventory are operating materials consisting of forge dies and production molds and rolls, that are consumed over their useful lives. During the years ended December 31, 2015, 2014 and 2013 , we amortized these operating materials in the amount of $ 1.8 million , $ 1.6 million and $1.2 million , respectively. This expense is recorded as a component of cost of products sold on the consolidated statements of operations and included as a part of our total depreciation and amortization on the consolidated statements of cash flows. Property, Plant and Equipment . Property, plant and equipment is recorded at cost or its fair value at acquisition date. Costs incurred in connection with the construction or major rebuild of facilities are capitalized as construction in progress. During the years ended December 31, 2015 and 2014 we did not capitalize interest expense related to projects in process. We did capitalize $ 263,000 of interest expense related to construction projects in progress for the year ended December 31, 2013. No depreciation is recognized on assets until they are placed in service. Assets which have been retired or disposed of are removed from cost and accumulated depreciation accounts, with the gain or loss reflected in operating income on the consolidated statements of operations. Major equipment maintenance costs are capitalized as incurred and included in other current assets. These costs are amortized to cost of products sold within a twelve -month period. Other maintenance costs are expensed as incurred. Costs of improvements and renewals are capitalized. Our maintenance expense for the years ended December 31, 2015, 2014 and 2013 was $ 16.9 million, $ 16.5 million and $ 14.8 million, respectively, which is included as a component of cost of products sold. Depreciation is computed using the straight-line method based on the estimated useful lives of the related assets. The estimated useful lives of buildings and land improvements are between 10 and 39 years, and the estimated useful lives of machinery and equipment are between 5 and 20 years. Our total depreciation expense for the years ended December 31, 2015, 2014 and 2013 was $ 15.8 million, $ 15.0 million and $ 14.3 million, respectively, of which $ 15.4 million , $14.6 million and $14.1 million , respectively was included as a component of cost of products sold while the remainder was included in selling, general and administrative expense. Intangible Assets. At December 31, 2014 we had a $1.3 million non-compete agreement related to the acquisition of the North Jackson facility which is classified as an intangible asset. Identifiable intangible assets are recorded at fair value upon acquisition and are amortized over the life of the agreement using the straight-line method. We recognized $432,000 , $ 266,000 and $ 266,000 of amortization expense during the years ended December 31, 2015, 2014 and 2013 , respectively, from intangible assets , which is included as a component of selling, general and administrative expenses on the consolidated statements of operations and included as part of total depreciation and amortization on the consoli dated statements of cash flows. The 2015 expense of $432,000 includes $ 255,000 for the early exit of a non-compete contract. At December 31, 2015 our intangible assets were fully amortized. Long-Lived Asset Impairment . Long-lived assets, including property, plant and equipment and intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in relation to the operating performance and future undiscounted cash flows of the underlying assets. Adjustments are made if the sum of expected future cash flows is less than the book value. Based on management’s assessment of the carrying values of long-lived assets, no impairment reserve was deemed necessary as of December 31, 2015, 2014 and 2013 . Deferred Financing Costs. Deferred financing costs are amortized up to the maturity date of the related financial instrument using the straight-line method, which approximates the effective interest method. Deferred financing cost amortization for the years ended December 31, 2015, 2014 and 2013 was $ 566,000 , $ 644,000 and $ 444,000 , respectively, and is included as a component of interest expense and other financing costs on the consolidated statements of operations and included as part of total depreciation and amortization on the consolidated statements of cash flows. At December 31, 2015 and 2014, we had $ 1.3 million and $1.4 million, respectively, of unamortized deferred financing costs included on our consolidated balance sheets as a component of other long-term assets. Goodwill. Goodwill, which represents the excess of cost over net tangible and identifiable intangible assets of acquired businesses, is stated at fair value. Goodwill is not amortized, but will be evaluated or tested annually for impairment or more frequently if any event indicates that the carrying amount of goodwill may be impaired. We perform our annual evaluation or test of goodwill as of the beginning of the fourth quarter. We evaluate or test goodwill for impairment by either performing a qualitative evaluation or a two-step quantitative test, which involves comparing the estimated fair value of the associated reporting unit to its carrying value. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that fair value is less than its carrying amount. Factors considered as part of the qualitative assessment include entity-specific, industry, market and general economic conditions. We may elect to bypass this qualitative assessment and perform a two-step quantitative test. We test for goodwill impairment using a combination of valuation techniques, which include consideration of a market-based approach (guideline company method) and an income approach (discounted cash flow method), in determining fair value in the annual impairment test of goodwill. We believe that the combination of the valuation models provides a more appropriate valuation by taking into account different marketplace participant assumptions. Both methods utilize market data in the derivation of a value estimate and are forward-looking in nature. The guideline assessment of future performance and the discounted cash flow method utilize a market-derived rate of return to discount anticipated performance. Other events and changes in circumstances may also require goodwill to be tested for impairment between annual measurement dates. While a decline in stock price and market capitalization is not specifically cited as a goodwill impairment indicator, a company’s stock price and market capitalization should be considered in determining whether it is more likely than not that the fair value of a reporting unit is less that its carrying value. Additionally, a significant decline in a company’s stock price may suggest that an adverse change in the business climate may have caused the fair value of the reporting unit to fall below its carrying value. The financial and credit market volatility directly impacts our fair value measurement through our stock price that we use to determine our market capitalization. During times of volatility, significant judgment must be applied to determine whether credit or stock price changes are a short-term swing or a longer-term trend. A sustained decline in our market capitalization below its book value could lead us to determine, in a future period, that an interim goodwill impairment review is required and may result in an impairment charge which would have a negative impact on our results of operations. We recorded a goodwill impairment in the third quarter of 2015. Due to a signi ficant and sustained drop in our share price and continued weak operating results driven by slower market conditions, the Company determined that an interim goodwill impairment review was required in accordance with Accounting Standards Codification (“ ASC ”) 350, “Intangibles – Goodwill and Other”. Based on the guidance in ASC 350, the Company performed the two-step quantitative analysis. Under the first step, the Company determined that the carrying value exceeded the fair value of the Company and, therefore, the second step of the analysis was performed. The fair value was estimated using a combination of an income approach, which estimates fair value based on projected discounted cash flows and a market approach, which estimates fair value using the recent stock price of the Company. The income approach is supported by a Level 3 fair value measurement, which means that the valuation reflects the Company’s own estimates of market participant assumptions. The market approach is supported by a Level 1 fair value measurement which is the observable stock price of the Company. The income approach was weighted 30% and the market approach was weighted 70% in determining the fair value. This assessment resulted in the recognition of a non-cash goodwill impairment charge of $ 20.3 million, which eliminated all goodwill from the balance sheet at September 30, 2015. Stockholders’ Equity. We have never paid a cash dividend on our common stock. Our Credit Agreement does not permit the payment of cash dividends. In October 1998, we initiated a stock repurchase program to repurchase up to 315,000 shares of our outstanding common stock in open market transactions at market prices. We were authorized to repurchase 45,100 remaining shares of common stock under this program as of December 31, 2015 . Revenue Recognition . Revenue from the sale of products is recognized when both risk of loss and title have transferred to the customer, which in most cases coincides with shipment of the related products, and collection is reasonably assured. Revenue from conversion services is recognized when the performance of the service is complete. Invoiced shipping and handling costs are also accounted for as revenue. Customer claims, which are not material, are accounted for primarily as a reduction to gross sales after the matter has been researched and an acceptable resolution has been reached. The following table presents net sales by product line: For the years ended December 31, 2015 2014 2013 (dollars in thousands) Stainless steel $ 135,945 $ 159,799 $ 137,383 High-strength low alloy steel 16,045 16,853 17,894 Tool steel 16,197 16,680 18,112 High-temperature alloy steel 7,557 6,295 4,277 Conversion services and other sales 4,916 5,933 3,102 Total net sales $ 180,660 $ 205,560 $ 180,768 Income Taxes . Deferred income taxes are provided for unused tax credits earned and the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. We use the liability method to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid. Valuation allowances are provided for a deferred tax asset when it is more likely than not that the asset will not be realized. Income tax penalties and interest are included in the provision for income tax expense. We evaluate the tax positions taken or expected to be taken in our tax returns. A tax position should only be recognized in the financial statements if we determine that it is more-likely-than-not that the tax position will be sustained upon examination by the tax authorities, based upon the technical merits of the position. For those tax positions that should be recognized, the measurement of a tax position is determined as being the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. We believe there are no material uncertain tax positions at December 31, 2015, 2014 and 2013 . We use the with-and-without method to account for excess tax benefits recognized as a result of the exercise of employee stock options. Under the with-and-without method, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to us, which are also subject to applicable limitations. Share-based Compensation Plans . We recognize compensation expense based on the grant-date fair value of the awards. The fair value of the stock option grants is estimated on the date of grant using the Black-Scholes option-pricing model, and is recognized ratably over the service/vesting period of the award. The fair value of time-based restricted stock grants is calculated using the market value of the stock on the date of issuance, and is recognized ratably over the service/vesting period of the award. Net (Loss) Income per Common Share . Net (loss) income per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income, adjusted to include interest expense (tax effected) for the convertible notes by the weighted-average number of common shares outstanding plus all dilutive potential common shares outstanding during the period. All shares that were issuable under our outstanding convertible notes were considered outstanding for our diluted net income per common share computation, using the “if converted” method of accounting from the date of issuance. Statement of Comprehensive Income. During the years ended December 31, 2015, 2014 and 2013, there were no comprehensive income items other than net income (loss); therefore, a separate consolidated Statement of Comprehensive Income was excluded from the consolidated financial statements. Treasury Stock. We account for treasury stock under the cost method and include such shares as a reduction of total stockholders’ equity. Financial Instruments. Financial instruments held by us include cash, accounts receivable, accounts payable and long-term debt. The carrying value of cash, accounts receivable and accounts payable is considered to be representative of fair value because of the short maturity of these instruments. Refer to Note 5 for fair value disclosures of our financial instruments. Segment Reporting. Our operating facilities are integrated, and therefore our chief operating decision maker (“CODM”) views the Company as one business unit. Our CODM sets performance goals, assesses performance and makes decisions about resource allocations on a consolidated basis. As a result of these factors, as well as the nature of the financial information available which is reviewed by our CODM, we maintain one reportable segment. Reclassifications. Certain prior year amounts have been reclassified to conform to the 2015 presentation. Recently Adopted Accounting Pronouncement In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. We adopted ASU 2015-17 in 2015. The update resulted in the classification of all deferred tax assets and liabilities as noncurrent on the consolidated balance sheet. Recently Issued Accounting Pronouncement In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606) which was amended, in August 2015, by ASU 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. This topic converges the guidance within U.S. GAAP and International Financial Reporting Standards and supersedes Accounting Standards Codification 605, Revenue Recognition. The new standard requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We are currently evaluating the impact that this standard will have on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” ("ASU 2015-11") to simplify the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first out or the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating the impact of the pending adoption of ASU 2015-11 on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance is effective for annual reporting periods beginning after December 15, 2015, including interim reporting periods within that reporting period, and early application is permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statements. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2015 | |
Inventory [Abstract] | |
Inventory | Note 2: Inventory The major classes of inventory are as follows: December 31, 2015 2014 (dollars in thousands) Raw materials and starting stock $ 6,235 $ 8,943 Semi-finished and finished steel products 69,907 84,816 Operating materials 8,543 8,759 Gross inventory 84,685 102,518 Inventory reserves (1,312) (1,448) Total inventory, net $ 83,373 $ 101,070 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 3: Property, Plant and Equipment Property, plant and equipment consists of the following: December 31, 2015 2014 (dollars in thousands) Land and land improvements $ 7,377 $ 7,088 Buildings 47,712 45,434 Machinery and equipment 236,991 225,754 Construction in progress 8,580 12,833 Gross property, plant and equipment 300,660 291,109 Accumulated depreciation (107,155) (91,314) Property, plant and equipment, net $ 193,505 $ 199,795 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note 4: Long-Term Debt Long-term debt consists of the following: December 31, 2015 2014 (dollars in thousands) Term loan $ 12,500 $ 15,500 Revolving credit facility 44,350 51,350 Convertible notes 20,000 20,000 Swing loan credit facility 287 25 77,137 86,875 Less: current portion of long-term debt (3,000) (3,000) Long-term debt $ 74,137 $ 83,875 Credit Facility At December 31, 2015 and 2014, we had a Credit Agreement (as previously amended, “Prior Credit Agreement”) with a syn dication of banks which provided for a $ 105.0 million senior secured revolving credit facility (the “ Prior Revolver”) and a $ 20.0 million senior secured term loan facility (the “ Prior Term Loan” and together with the Prior Revolve r, the “Prior Facilities”) with an expiration in March 2017 . The Prior Credit Agreement required us to pay a commitment fee of 0.25% based on the daily unused portion of the Prior Revolver. The Prior Revolver also provided for up to $ 7.0 million of swing loans so long as the sum of the outstanding swing loans and the outstanding borrowings under the Prior Revolver did not exceed our borrowing b ase under the terms of the Prior Credit Agreement . The Prior Term Loan was payable in quarterly installments in the principal amount of $ 750,000 which began on July 1, 2013 , with the balance of the Term Loan payable in full on March 19, 2017 . Amounts outstanding under the Prior Faci lities, at our option, incurred interest at either a base rate or a LIBOR-based rate (the “LIBOR Option”), in either case calculated in accordance with the terms of the Prior Credit Agreement. We elected to use the LIBOR Option during the year ended December 31, 2015 , which was 2.18% at December 31, 2015 . Interest on the Prior Facilities was payable monthly. Amounts outstanding under the Prior Facilities were collateralized by the Company’s accounts receivable, inventory and property, plant and equipment. On October 23, 2015, the Company entered into a Fourth Amendment to the Prior Credit Agreement ( the “Fourth Amendment”) which was effective as of September 30, 2015. Pursuant to the Fourth Amendment, the covenants required under the Prior Credit Agreement were amended. We were in compliance wi th our covenants at December 31 , 2015 and December 31, 2014. On January 21, 2016 we entered into a new Revolving Credit, Term Loan and Security Agreement (the “Credit Agreement”) with PNC Bank, National Association, as administrative agent and co-collateral agent, Bank of America, N.A., as co-collateral agent and PNC Capital Markets LLC, as sole lead arranger and sole bookrunner. The Credit Agreement provides for a senior secured revolving credit facility not to exceed $ 65 million (the “Revolving Credit Facility”) and a senior secured term loan facility (the “Term Loan”) in the amount of $ 30 million (together with the Revolving Credit Facility, the “Facilities”). The Credit Agreement also provides for a letter of credit sub-facility not to exceed $ 10.0 million and a swing loan sub-facility not to exceed $ 5.0 million. The Credit Agreement replaces the Prior Credit Agreement. The Company was in compliance with all applicable financial covenants set forth in the Prior Credit Agreement as of the date of its entrance into the Credit Agreement. The Facilities, which expire upon the earlier of (i) January 21, 2021 or (ii) the date that is 90 days prior to the sc heduled maturity date of the Convertible Notes (as defined below) (in either case, the “Expiration Date”), are collateralized by a first lien in substantially all of the assets of the Company and its subsidiaries, except that no real property is collateral under the Facilities other than the Company’s real property in North Jackson, Ohio. Availability under the Revolving Credit Facility is based on eligible accounts receivable and inventory. The Company is required to pay a commitment fee of 0.25% based on the daily unused portion of the Revolving Credit Facility. With respect to the Term Loan, the Company will pay quarterly installments of principal of approximately $ 1.1 million, plus accrued and unpaid interest, on the first day of each fiscal quarter beginning on April 1, 2016 . To the extent not previously paid, the Term Loan will become due and payable in full on the Expiration Date. Amounts outstanding under the Facilities, at the Company’s option, will bear interest at either a base rate or a LIBOR based rate, in either case calculated in accordance with the terms of the Credit Agreement. Interest under the Credit Agreement is payable monthly. The Credit Agreement contains customary affirmative and negative covenants. The Company also must maintain certain levels of EBITDA as outlined in the Credit Agreement. As of December 31, 2016 and as of the end of each fiscal quarter ending thereafter, the Company must maintain a fixed charge coverage ratio of not less than 1.10 to 1.0, in each case measured on a rolling four-quarter basis calculated in accordance with the terms of the Credit Agreement. At December 31, 2015 we had deferred financing fees of approximately $ 1.3 million. As a result of entering into the Credit Agreement we expect to write off approximately $ 0.8 million of deferred fees in the first quarter of 2016. Pursuant to the terms of the Credit Agreement, the Company completed the issuance of 73,207 shares of the Company’s common stock to certain directors and officers of the Company on February 2, 2016. The aggregate purchase price of the stock was $ 500,003.81 based on the average of the high and low reported trading prices for the Company’s common stock on The Nasdaq Stock Market on February 1, 2016. Convertible Notes In connection with the acquisition of the North Jackson facility, in August 2011, we issued $ 20.0 million in convertible notes (the “Notes”) to the sellers of the North Jackson facility as partial consideration of the acquisition. The Notes were subordinated obligations and rank ed junior to the Prior Facilities. The Notes bore interest at a fixed rate of 4.0% per annum, payable in cash semi-annually in arrears on each June 18 and December 18, beginning on December 18, 2011. As of December 31, 2015, u nless earlier converted, the Notes were scheduled to mature and the unpaid principal balance was due on August 17, 2017 . The Notes and any accrued and unpaid interest were convertible into shares of our common stock at the option of the holder at an initial conversion price of $ 47.1675 per share of common stock. The conversion price associated with the Notes was subject to adjustment i n certain circumstances. We were permitted to prepay any outstanding Notes, in whole or in part, during a fiscal quarter if our share price was greater than 140% of the then- current conversion price for at least 20 of the trading days in the 30 consecutive trading day period ending on the last trading day of the immediately preceding quarter. On January 21, 2016, the Company entered into Amended and Restated Convertible Notes (collectively, the “Convertible Notes”) in the aggregate principal amount of $ 20.0 million, each in favor of Gorbert Inc. (the “Holder”). The Convertible Notes amended and restated the Notes. The Company’s obligations under the Convertible Notes are collateralized by a second lien on the same assets of the Co-Borrowers that collateralize the obligations of the Co-Borrowers under the Facilities. The Convertible Notes mature on March 17, 2019 and the maturity date may be extended, at the Company’s option, to March 17, 2020 and further to March 17, 2021. If the Company elects to extend the maturity date of the Convertible Notes to March 17, 2020, principal payments in the aggregate of $2.0 million will be required on March 17, 2019. If the Company elects to extend the maturity date of the Convertible Notes further to March 17, 2021, principal payments in the aggregate of $ 2.0 million will be required on March 17, 2020. The Convertible Notes bear interest at a rate of 4.0% per year through and including August 17, 2016, a rate of 5.0% per year from August 18, 2016 through and including August 17, 2017 and a rate of 6.0% per year from and after August 18, 2017. Through and including June 18, 2017, all accrued and unpaid interest is payable semi-annually in arrears on each June 18 and December 18. After June 18, 2017, all accrued and unpaid interest is payable quarterly in arrears on each September 18, December 18, March 18 and June 18. The Holder may elect at any time on or prior to August 17, 2017 to convert all or any portion of the outstanding principal amount of the Convertible Notes which is an integral multiple of $ 100,000 . The Convertible Notes are convertible into shares of common stock and, in certain circumstances, cash, securities and/or other assets. The Convertible Notes are convertible based on an initial conversion rate of 21.2 shares of Common Stock per $ 1,000 principal amount of the Convertible Notes (equivalent to an initial conversion price of $ 47.1675 per share). The conversion rate and the conversion price associated with the Convertible Notes may be adjusted in certain circumstances. The Holder’s conversion rights will be void and no longer subject to exercise by the Holder beginning on August 17, 2017. In conjunction with the issuance of the Convertible Notes, we made principal prepayments on the Convertible Notes totaling $ 1.0 million on January 21, 2016. The aggregate annual principal payments due under our Prior Credit Agreement at December 31, 2015, are as follows: (dollars in thousands) 2016 $ 3,000 2017 74,137 $ 77,137 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 5: Fair Value Measurements The fair value hierarchy has three levels based on the inputs used to determine fair value, which are as follows: Level 1 — Unadjusted quoted prices available in active markets for the identical assets or liabilities at the measurement date. Level 2 — Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The carrying amounts of our cash, accounts receivable and accounts payable approximated fair value at December 31, 2015 and 2014 due to their short-term nature (Level 1). The fair value of the Term Loan, Revolver and swing loans at December 31, 2015 and 2014 approximated the carrying amount as the interest rate is based upon floating short-term interest rates (Level 2). At December 31, 2015 and 2014, the fair value of our Notes was approximately $ 19.2 million and $20.5 million, respectively (Level 2). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 6: Income Taxes The income tax provision (benefit) attributable to continuing operations during the years ended December 31, 2015, 2014 and 2013 is as follows: Components of the provision (benefit) for income taxes are as follows: For the years ended December 31, 2015 2014 2013 (dollars in thousands) Current (benefit) provision Federal $ (105) $ 312 $ 85 State 56 298 (6) Deferred (benefit) provision Federal (11,843) 1,941 (3,205) State (252) 598 622 (Benefit) provision for income taxes $ (12,144) $ 3,149 $ (2,504) A reconciliation of the federal statutory tax rate and our effective tax rate is as follows: For the years ended December 31, 2015 2014 2013 Federal statutory tax rate 35.0 % 35.0 % 35.0 % Research and development tax credit 1.6 (2.9) 14.6 State government grants, net of federal tax impact - - 4.2 Valuation allowance, state government grants, net of federal impact - 8.2 (15.0) Domestic manufacturing deduction - - - State income taxes, net of federal impact 0.6 3.7 1.4 Other, net (0.2) (0.3) (2.1) Effective income tax rate 37.0 % 43.7 % 38.1 % We continue to record a full valuation allowance against our New York deferred tax assets due to the zero percent ( 0% ) state income tax rate for qualified manufacturers. We have determined that federal and other state deferred tax assets are expected to be realized and have not recorded any additional valuation allowances. The Protecting Americans from Tax Hikes Act of 2015 extended the tax benefit for research and development tax credits resulting in a benefit of approximately $ 430,000 , which was recorded entirely in the fourth quarter of 2015. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our net deferred taxes related to continuing operations are as follows: December 31, 2015 2014 (dollars in thousands) Noncurrent deferred income taxes: Federal and state tax carryforwards $ 22,495 $ 17,495 Inventory 1,196 3,136 Share-based compensation 3,545 3,300 Receivables 76 29 Accrued liabilities 299 396 Other 65 65 Total deferred tax assets $ 27,676 $ 24,421 Deferred tax liabilities: Property, plant and equipment $ 47,899 $ 56,354 Other 443 492 Total deferred tax liabilities $ 48,342 $ 56,846 Total noncurrent deferred income taxes $ 20,666 $ 32,425 We file a U . S . federal income tax return and various state income tax returns. For federal income tax purposes, we had $ 54.2 million and $41.5 million of net operating loss carryforwards at December 31, 2015 and 2014 respectively. The net operating loss carryforwards begin to expire in 2031. In addition, we have credit carryforwards associated with our research and development activities of $ 2.3 million and $1.7 million as of December 31, 2015 and 2014 respectively. The research and development credit carryforwards being to expire in 2030. We also have $ 489,000 and $597,000 in alternative minimum tax credit carryforwards for the years ended December 31, 2015 and 2014 respectively. The alternative minimum tax credit carryforwards can be carried forward indefinitely. We have state net operating loss carryforwards of $ 9.0 million and $8.1 million and state credit carryforwards of $ 265,000 and $ 267,000 at December 31, 2015 and 2014 respectively. The state net operating loss carryforwards begin to expire in 2031 . The state credit carryforwards begin to expire in 2027. We are routinely under audit by federal or state authorities. Our federal tax returns are subject to examination by the IRS for tax years after 2011. We are subject to examination by state tax jurisdictions for tax years after 2011. |
Net (Loss) Income Per Common Sh
Net (Loss) Income Per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
Net (Loss) Income Per Common Share [Abstract] | |
Net (Loss) Income Per Common Share | Note 7: Net (Loss) Income Per Common Share The computation of basic and diluted net (loss) income per common share for the years ended December 31, 2015, 2014 and 2013 is as follows: For the years ended December 31, 2015 2014 2013 (dollars in thousands, except per share amounts) Numerator: Net (loss) income $ (20,672) $ 4,050 $ (4,062) Adjustment for interest expense on convertible notes - - - Net (loss) income, as adjusted $ (20,672) $ 4,050 $ (4,062) Denominator: Weighted average number of shares of common stock outstanding 7,069,954 7,031,539 6,950,976 Weighted average effect of dilutive stock options and other stock compensation - 84,892 - Weighted average effect of assumed conversion of convertible notes - - - Weighted average number of shares of common stock outstanding, as adjusted 7,069,954 7,116,431 6,950,976 Net (loss) income per common share: Basic $ (2.92) $ 0.58 $ (0.58) Diluted $ (2.92) $ 0.57 $ (0.58) An adjustment for interest expense on convertible notes was excluded from the income per share calculation for t he years ended December 31, 2015, 2014 and 2013 as a result of the convertible notes being antidilutive. There were 635,200, 440,300 and 353,550 options to purchase shares of common stock, at an average price of $ 30.67 , $ 35.20 and $ 36.36 for the years ended December 31, 2015, 2014 and 2013 , respectively that were not included in the computation of diluted net (loss) income per common share because their respective exercise prices were greater than the average market price of our common stock. The calculation of diluted earnings per share for the years ended December 31, 2015, 2014 and 2013 excludes 428,140 shares, for the assumed conversion of convertible notes as a result of the convertible notes being antidilutive. In addition, the calculation of diluted earnings per share for the years ended December 31, 2015 and 2013 would have included 21,774 and 118,814 respectively, for the assumed exercise of options and restricted stock under our share incentive plans except that we were in a net loss position and the impact would have been antidilutive. |
Incentive Compensation Plans
Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Incentive Compensation Plans [Abstract] | |
Incentive Compensation Plans | Note 8: Incentive Compensation Plans At December 31, 2015 , we had three incentive compensation plans that are described below: Omnibus Incentive Plan We maintain an Omnibus Incentive Plan (“OIP”) which was approved by our stockholders in May 2012. The OIP permits the issuance of stock options, restricted stock, restricted stock units and other stock-based awards to non-employee directors, other than those directors owning more than 5% of our outstanding common stock, consultants, officers and other key employees who are expected to contribute to our future growth and success. An aggregate of 2,150,000 shares of common stock were authorized for issuance under the OIP, of which 363,993 were available for grant at December 31, 2015 . Stock Options The option price for options granted under the OIP is equal to the fair market value of the common stock at the date of grant. Options granted to non-employee directors vest over a three -year period, and options granted to employees vest over a four -year period. All options under the OIP will expire no later than ten years after the grant date. Forfeited options may be reissued and are included in the amount available for grants. A summary of stock option activity as of and for the year ended December 31, 2015 is presented below: Non-vested stock Stock options options outstanding outstanding Weighted- Weighted- Weighted- average average average Number grant-date Number exercise contractual of shares fair value of shares price term (years) Outstanding at December 31, 2014 235,844 $ 16.34 775,675 $ 29.12 Stock options granted 192,400 6.99 192,400 13.02 Stock options exercised - - (17,500) 15.27 Stock options vested (59,469) 17.45 - - Stock options forfeited (69,575) 15.00 (108,825) 29.19 Outstanding at December 31, 2015 299,200 $ 10.40 841,750 $ 25.71 5.2 Exercisable at December 31, 2015 542,550 $ 29.84 4.6 Proceeds from stock option exercises totaled $267,000 , $764,000 and $848,000 for the years ended December 31, 2015, 2014 and 2013 , respectively. Shares issued in connection with stock option exercises are issued from available authorized shares. Based upon the closing stock price of $ 9.29 at December 31, 2015 , there was no intrinsic value of outstanding and exercisable stock options. Intrinsic value of stock options is calculated as the amount by which the market price of our common stock exceeds the exercise price of the options. The aggregate intrinsic value of stock options exercised for the years ended December 31, 2015, 2014 and 2013 was $129,000 , $841,000 and $929,000 , respectively. The total fair value of stock option awards vested during the years ended December 31, 2015, 2014 and 2013 was $ 1.0 million , $1.7 million and $1.4 million , respectively. Share-based compensation to employees and directors is recognized as compensation expense in the consolidated statements of operations based on the stock options fair value on the measurement date, which is the date of the grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods. The compensation expense recognized and its related tax effects are included in additional paid-in capital. Share-based compensation expense related to stock options totaled $ 1.5 million , $1.7 million and $1.5 million for the years ended December 31, 2015, 2014 and 2013 , respectively. Share-based compensation expense is recognized ratably over the requisite service period for all stock option awards. Unrecognized share-based compensation expense related to non-vested stock option awards totaled $ 2.7 million at December 31, 2015 . At such date, the weighted-average period over which this unrecognized expense was expected to be recognized was 3.0 years. We recognized no tax benefit for the exercise of stock options during the years ended December 31, 2015, 2014 and 2013 . The fair value of our stock options granted is estimated on the measurement date, which is the date of grant. We use the Black-Scholes option-pricing model. Our determination of fair value of stock option awards on the date of grant is affected by our stock price as well as assumptions regarding our expected stock price volatility over the term of the awards, and actual and projected stock option exercise behaviors. The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2015, 2014 and 2013 was $ 6.99 , $14.39 and $18.02 , respectively. The assumptions used to determine the fair value of stock options granted are detailed in the table below: 2015 2014 2013 Risk-free interest rate 1.77% to 2.19% 1.79% to 2.13% 1.02% to 2.14% Dividend yield 0.0% 0.0% 0.0% Expected market price volatility 49% to 55% 49% to 57% 57% to 60% Weighted-average expected market price volatility 52.6% 52.6% 58.1% Expected term 5.6 to 7.5 years 5.6 to 7.5 years 5.4 to 7.5 years The risk-free interest rate was developed using the U.S. Treasury yield curve for periods equal to the expected life of the stock options at the grant date. No dividend yield was assumed because we do not pay cash dividends on common stock and currently have no plans to pay a dividend. Expected volatility is based on the long-term historical volatility (estimated over a period equal to the expected term of the stock options) of our common stock. In estimating the fair value of stock options under the Black-Scholes option-pricing model, separate groups of employees that have similar historical exercise behavior are considered separately. The expected term of options granted represents the period of time that options granted are expected to be outstanding. Restricted Stock During the year ended December 31, 2012, we granted 35,000 time-based shares of restricted common stock to certain employees. The fair value of the non-vested time-based restricted common stock awards was calculated using the market value of the stock on the date of issuance, which was $35.26 . During the year ended December 31, 2013, 3,000 of these restricted shares were forfeited. Share-based compensation expense related to restricted stock totaled $412,000 , $342,000 and $339,000 for the years ended December 31, 2015, 2014 and 2013 , respectively. As of December 31, 2015 , all of the restricted shares have vested. Employee Stock Purchase Plan Under the 1996 Employee Stock Purchase Plan, as amended (the “Plan”), the Company is authorized to issue up to 200,000 shares of common stock to its full-time employees, nearly all of whom are eligible to participate. Under the terms of the Plan, employees can choose as of January 1 and July 1 of each year to have up to 10% of their total earnings withheld to purchase up to 100 shares of our common stock each six-month period. The purchase price of the stock is 85% of the lower of its beginning-of-the-period or end-of-the-period market prices. At December 31, 2015 , we have issued 178,636 shares of common stock since the Plan’s inception. Cash Incentive Plans We have a variable compensation plan covering certain key executives and senior management and profit-sharing plans and a key performance plan that cover the remaining employees. The variable compensation plan aligns the compensation of executive officers and senior management with the performance expectations of the Board of Directors in order to motivate and reward them for the achievement of Company performance metrics. The profit-sharing plans provide for the sharing of pre-tax profits in excess of specified amounts at our Bridgeville, Dunkirk and Titusville facilities. The key performance plan provides a cash incentive for achieving certain performance metrics at our North Jackson facility. For the years ended December 31, 2015, 2014 and 2013 , we expensed $ 1.0 million , $4.4 million and $1.0 million , respectively, under these cash incentive plans of which $ 404,000 , $ 1.8 million, and $ 576,000 , respectively was included as a component of cost of products sold while the remainder was included in selling and administrative expense. At December 31, 2015 and 2014 , we had liabilities of $608,000 and $ 3.3 million , respectively, as a component of accrued employment costs on our consolidated balance sheets related to these cash incentive plans. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Retirement Plans [Abstract] | |
Retirement Plans | Note 9: Retirement Plans We have a defined contribution retirement plan (“401(k) plan”) that covers substantially all employees. Pursuant to the 401(k) plan, participants may elect to make pre-tax and after-tax contributions, subject to certain limitations imposed under the Internal Revenue Code of 1986, as amended. In addition, we make periodic contributions to the 401(k) plan based on service for the Titusville and Dunkirk hourly employees and age for North Jackson hourly employees. We make periodic contributions for the salaried employees at all locations except for North Jackson based upon their service and their individual contribution to the 401(k) plan. For North Jackson salaried employees, we make periodic contributions based upon the employee’s age and their individual contributions. We also participate in the Steelworkers Pension Trust (the “Trust”), a multi-employer defined-benefit pension plan that is open to all hourly and salary employees associated with the Bridgeville facility. We make periodic contributions to the Trust based on hours worked at a fixed rate for each hourly employee, as determined by the collective bargaining agreement, which expires in August 2018 and a fixed monthly contribution on behalf of each salary employee. The trustees of the Trust have provided us with the latest data available for the Trust year ending December 31, 2015 . As of that date, the Trust is not fully funded. We could be held liable to the Trust for our own obligations, as well as those of other employers, due to our participation in the Trust. Contribution rates could increase if the Trust is required to adopt a funding improvement plan or a rehabilitation plan, if the performance of the Trust assets do not meet expectations, or as a result of future collectively-bargained wage and benefit agreements. If we choose to stop participating in the Trust, we may be required to pay the Trust an amount based on the underfunded status of the Trust, referred to as a withdrawal liability. The Pension Protection Act (PPA) defines a zone status for each trust. Trusts in the green zone are at least 80% funded, trusts in the yellow zone are at least 65% funded, and trusts in the red zone are generally less than 65% funded. The Trust has utilized extended amortization provisions to amortize its losses from 2008. The Trust recertified its zone status after using the extended amortization provisions as allowed by law. The Trust has not implemented a funding improvement or rehabilitation plan, nor are such plans pending. Our contributions to the Trust have not exceeded more than 5% of the total contributions to the Trust. Trusts employer identification Funding plan Company contributions to the Trust Pension number / PPA zone status pending / (dollars in thousands) Surcharge fund plan number 2015 2014 implemented 2015 2014 2013 imposed Trust 23-6648508 / 499 Green Green No $ 737 $ 758 $ 668 No The total expense of all retirement plans for the years ended December 31, 2015, 2014 and 2013 was $1.6 million , $1.6 million and $ 1.5 million , respectively. No other post-retirement benefit plans exist. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 10: Commitments and Contingencies From time to time, various lawsuits and claims have been or may be asserted against us relating to the conduct of our business, including routine litigation relating to commercial and employment matters. The ultimate cost and outcome of any litigation or claim cannot be predicted with certainty. Management believes, based on information presently available, that the likelihood that the ultimate outcome of any such pending matter will have a material adverse effect on its financial condition, or liquidity or a material impact to its results of operations is remote, although the resolution of one or more of these matters may have a material adverse effect on our results of operations for the period in which the resolution occurs. We, as well as other steel companies, are subject to demanding environmental standards imposed by federal, state and local environmental laws and regulations. We are not aware of any environmental condition that currently exists at any of our facilities that would cause a material adverse effect on our financial condition, results of operations or liquidity in a particular future quarter or year. Our purchase obligations include the value of all open purchase orders with established quantities and purchase prices, as well as minimum purchase commitments, all made in the normal course of business. At December 31, 2015 , our total purchase obligations were $ 6.5 million which $5.9 million will be due in 2016. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data | Note 11: Selected Quarterly Financial Data (unaudited) First quarter Second quarter Third quarter Fourth quarter (dollars in thousands, except per share amounts) 2015 Data: Net sales $ 55,983 $ 49,610 $ 43,371 $ 31,696 Gross margin $ 5,710 $ 5,186 $ (410) $ (891) Goodwill impairment $ - $ - $ 20,265 $ - Operating income (loss) $ 1,016 $ 225 $ (25,896) $ (5,424) Provision (benefit) for income taxes $ 65 $ (173) $ (9,539) $ (2,497) Net income (loss) $ 125 $ (356) $ (17,045) $ (3,396) Net income (loss) per common share: Basic $ 0.02 $ (0.05) $ (2.41) $ (0.48) Diluted $ 0.02 $ (0.05) $ (2.41) $ (0.48) 2014 Data: Net sales $ 46,667 $ 52,309 $ 53,626 $ 52,958 Gross margin $ 6,060 $ 8,410 $ 8,643 $ 8,909 Operating income $ 1,432 $ 3,241 $ 3,123 $ 3,104 Provision for income taxes $ 1,072 $ 749 $ 775 $ 553 Net (loss) income $ (499) $ 1,449 $ 1,395 $ 1,705 Net (loss) income per common share: Basic $ (0.07) $ 0.21 $ 0.20 $ 0.24 Diluted $ (0.07) $ 0.20 $ 0.20 $ 0.24 Net income (loss) per common share amounts for each quarter is required to be computed independently. As a result, their sum may not equal the total year earnings per share amounts. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12: Subsequent Events On January 21, 2016 we entered into the Credit Agreement. The Credit Agreement provides for a senior secured revolving credit facility not to exceed $ 65 million and a senior secured term loan facility relating to a term loan in the amount of $ 30 million. The Credit Agreement also provides for a letter of credit sub-facility not to exceed $ 10 .0 million and a swing loan sub-facility not to exceed $ 5 .0 million. At December 31, 2015, we had deferred financing fees of approximately $ 1.3 million. As a result of entering into the Credit Agreement we expect to write off approximately $ 0.8 million of deferred fees in the first quarter of 2016. Pursuant to the terms of the Credit Agreement, the Company completed the issuance of 73,207 shares of the Company’s common stock to certain directors and officers of the Company on February 2, 2016. The aggregate purchase price of the stock was $ 500,003.81 based on the average of the high and low reported trading prices for the Company’s common stock on The Nasdaq Stock Market on February 1, 2016. On January 21, 2016, the Company entered into the Convertible Notes in the aggregate principal amount of $ 20.0 million, each in favor of Gorbert Inc. The Convertible Notes amend ed and restate d the Notes, which were entered into by the Company in connection with its acquisition of the Company’s facility in North Jackson, Ohio. The Com pany’s obligations under the Convertible Notes are collateralized by a second lien in the same assets of the Co-Borrowers that collateralize the obligations of the Co-Borrowers under the Facilities. The Convertible Notes mature on March 17, 2019 and the maturity date of the Convertible Notes may be extended, at the Company’s option, to March 17, 2020 and further to March 17, 2021. In conjunction with the issuance of the C onvertible Notes, we made principal pre payments on the Convertible Notes totaling $ 1.0 m illion on January 21, 2016. See Note 4, Long Term Debt, for additional details on the Credit Agreement and the Convertible Notes. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II – Valu ation and Qualifying Accounts Balance at Charged to Deductions/ beginning costs and net charge- Balance at For the Years Ended December 31, 2015, 2014 and 2013 of year expenses offs (A) end of year (dollars in thousands) Allowance for doubtful accounts: Year ended December 31, 2015 $ 17 $ 239 $ (7) $ 249 Year ended December 31, 2014 84 18 (85) 17 Year ended December 31, 2013 1,837 30 (1,783) 84 Valuation allowance for deferred income taxes: Year ended December 31, 2015 $ 1,582 $ - $ - $ 1,582 Year ended December 31, 2014 986 596 - 1,582 (A) Represents write-off of bad debts net of recoveries |
Significant Accounting Polici20
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation . The consolidated financial statements include the accounts of Universal Stainless & Alloy Products, Inc. and its wholly-owned subsidiaries (collectively, “we,” “us,” “our,” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. We have no interests in any unconsolidated entity. |
Use of Estimates | Use of Estimates . The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. The estimates and assumptions used in these consolidated financial statements are based on known information available as of the balance sheet date. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk . We limit our credit risk on accounts receivable by performing ongoing credit evaluations and, when deemed necessary, require letters of credit, guarantees or cash collateral. During 2015, we had one customer which accounted for more than 16% of our total net sales and for 7% of our total accounts receivable balance. During 2014, we had one customer that accounted for more than 18% of our total net sales and for 11% of our total accounts receivable balance . During 2013, we had two customers which each accounted for more than 10% , and collectively for 26% , of our total net sales. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts . Accounts receivable are presented net of the allowance for doubtful accounts on our consolidated balance sheets. We market our products to a diverse customer base, primarily throughout the United States. During the years ended December 31, 2015, 2014 and 2013 , we derived 9% , 7% and 6% , respectively, of our net sales from markets outside of the United States. The allowance for doubtful accounts includes specific reserves for the value of outstanding invoices issued to customers that are deemed potentially not collectible. Receivables are charged-off to the allowance when they are deemed to be uncollectible. Bad debt expense, net of recoveries for the years ended December 31, 2015, 2014 and 2013 was $ 239,000 , $ 18,000 and $ 30,000 , respectively. |
Inventories | Inventories . Inventories are stated at the lower of cost or market with cost principally determined by the weighted average cost method. Such costs include the acquisition cost for raw materials and supplies, direct labor and applied manufacturing overhead within the guidelines of normal plant capacity. We reserve for slow-moving inventory and inventory that is being evaluated under our quality control process. The reserves are based upon management’s expected method of disposition. The net change in inventory reserves for the year ended December 31, 2015 , was a decrease of $ 136,000 , primarily due to the dispositi on of slow moving material that was no longer considered sellable and was returned to our melt shop. The net change in inventory reserves for the years ended December 31, 2014 and 2013 was a $ 603,000 decrease and a $ 617,000 increase, respectively. Included in inventory are operating materials consisting of forge dies and production molds and rolls, that are consumed over their useful lives. During the years ended December 31, 2015, 2014 and 2013 , we amortized these operating materials in the amount of $ 1.8 million , $ 1.6 million and $1.2 million , respectively. This expense is recorded as a component of cost of products sold on the consolidated statements of operations and included as a part of our total depreciation and amortization on the consolidated statements of cash flows. |
Property, Plant and Equipment | Property, Plant and Equipment . Property, plant and equipment is recorded at cost or its fair value at acquisition date. Costs incurred in connection with the construction or major rebuild of facilities are capitalized as construction in progress. During the years ended December 31, 2015 and 2014 we did not capitalize interest expense related to projects in process. We did capitalize $ 263,000 of interest expense related to construction projects in progress for the year ended December 31, 2013. No depreciation is recognized on assets until they are placed in service. Assets which have been retired or disposed of are removed from cost and accumulated depreciation accounts, with the gain or loss reflected in operating income on the consolidated statements of operations. Major equipment maintenance costs are capitalized as incurred and included in other current assets. These costs are amortized to cost of products sold within a twelve -month period. Other maintenance costs are expensed as incurred. Costs of improvements and renewals are capitalized. Our maintenance expense for the years ended December 31, 2015, 2014 and 2013 was $ 16.9 million, $ 16.5 million and $ 14.8 million, respectively, which is included as a component of cost of products sold. Depreciation is computed using the straight-line method based on the estimated useful lives of the related assets. The estimated useful lives of buildings and land improvements are between 10 and 39 years, and the estimated useful lives of machinery and equipment are between 5 and 20 years. Our total depreciation expense for the years ended December 31, 2015, 2014 and 2013 was $ 15.8 million, $ 15.0 million and $ 14.3 million, respectively, of which $ 15.4 million , $14.6 million and $14.1 million , respectively was included as a component of cost of products sold while the remainder was included in selling, general and administrative expense. |
Intangible Assets | Intangible Assets. At December 31, 2014 we had a $1.3 million non-compete agreement related to the acquisition of the North Jackson facility which is classified as an intangible asset. Identifiable intangible assets are recorded at fair value upon acquisition and are amortized over the life of the agreement using the straight-line method. We recognized $432,000 , $ 266,000 and $ 266,000 of amortization expense during the years ended December 31, 2015, 2014 and 2013 , respectively, from intangible assets , which is included as a component of selling, general and administrative expenses on the consolidated statements of operations and included as part of total depreciation and amortization on the consoli dated statements of cash flows. The 2015 expense of $432,000 includes $ 255,000 for the early exit of a non-compete contract. At December 31, 2015 our intangible assets were fully amortized. |
Long-Lived Asset Impairment | Long-Lived Asset Impairment . Long-lived assets, including property, plant and equipment and intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in relation to the operating performance and future undiscounted cash flows of the underlying assets. Adjustments are made if the sum of expected future cash flows is less than the book value. Based on management’s assessment of the carrying values of long-lived assets, no impairment reserve was deemed necessary as of December 31, 2015, 2014 and 2013 . |
Deferred Financing Costs | Deferred Financing Costs. Deferred financing costs are amortized up to the maturity date of the related financial instrument using the straight-line method, which approximates the effective interest method. Deferred financing cost amortization for the years ended December 31, 2015, 2014 and 2013 was $ 566,000 , $ 644,000 and $ 444,000 , respectively, and is included as a component of interest expense and other financing costs on the consolidated statements of operations and included as part of total depreciation and amortization on the consolidated statements of cash flows. At December 31, 2015 and 2014, we had $ 1.3 million and $1.4 million, respectively, of unamortized deferred financing costs included on our consolidated balance sheets as a component of other long-term assets. |
Goodwill | Goodwill. Goodwill, which represents the excess of cost over net tangible and identifiable intangible assets of acquired businesses, is stated at fair value. Goodwill is not amortized, but will be evaluated or tested annually for impairment or more frequently if any event indicates that the carrying amount of goodwill may be impaired. We perform our annual evaluation or test of goodwill as of the beginning of the fourth quarter. We evaluate or test goodwill for impairment by either performing a qualitative evaluation or a two-step quantitative test, which involves comparing the estimated fair value of the associated reporting unit to its carrying value. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that fair value is less than its carrying amount. Factors considered as part of the qualitative assessment include entity-specific, industry, market and general economic conditions. We may elect to bypass this qualitative assessment and perform a two-step quantitative test. We test for goodwill impairment using a combination of valuation techniques, which include consideration of a market-based approach (guideline company method) and an income approach (discounted cash flow method), in determining fair value in the annual impairment test of goodwill. We believe that the combination of the valuation models provides a more appropriate valuation by taking into account different marketplace participant assumptions. Both methods utilize market data in the derivation of a value estimate and are forward-looking in nature. The guideline assessment of future performance and the discounted cash flow method utilize a market-derived rate of return to discount anticipated performance. Other events and changes in circumstances may also require goodwill to be tested for impairment between annual measurement dates. While a decline in stock price and market capitalization is not specifically cited as a goodwill impairment indicator, a company’s stock price and market capitalization should be considered in determining whether it is more likely than not that the fair value of a reporting unit is less that its carrying value. Additionally, a significant decline in a company’s stock price may suggest that an adverse change in the business climate may have caused the fair value of the reporting unit to fall below its carrying value. The financial and credit market volatility directly impacts our fair value measurement through our stock price that we use to determine our market capitalization. During times of volatility, significant judgment must be applied to determine whether credit or stock price changes are a short-term swing or a longer-term trend. A sustained decline in our market capitalization below its book value could lead us to determine, in a future period, that an interim goodwill impairment review is required and may result in an impairment charge which would have a negative impact on our results of operations. We recorded a goodwill impairment in the third quarter of 2015. Due to a signi ficant and sustained drop in our share price and continued weak operating results driven by slower market conditions, the Company determined that an interim goodwill impairment review was required in accordance with Accounting Standards Codification (“ ASC ”) 350, “Intangibles – Goodwill and Other”. Based on the guidance in ASC 350, the Company performed the two-step quantitative analysis. Under the first step, the Company determined that the carrying value exceeded the fair value of the Company and, therefore, the second step of the analysis was performed. The fair value was estimated using a combination of an income approach, which estimates fair value based on projected discounted cash flows and a market approach, which estimates fair value using the recent stock price of the Company. The income approach is supported by a Level 3 fair value measurement, which means that the valuation reflects the Company’s own estimates of market participant assumptions. The market approach is supported by a Level 1 fair value measurement which is the observable stock price of the Company. The income approach was weighted 30% and the market approach was weighted 70% in determining the fair value. This assessment resulted in the recognition of a non-cash goodwill impairment charge of $ 20.3 million, which eliminated all goodwill from the balance sheet at September 30, 2015. |
Stockholders' Equity | Stockholders’ Equity. We have never paid a cash dividend on our common stock. Our Credit Agreement does not permit the payment of cash dividends. In October 1998, we initiated a stock repurchase program to repurchase up to 315,000 shares of our outstanding common stock in open market transactions at market prices. We were authorized to repurchase 45,100 remaining shares of common stock under this program as of December 31, 2015 . |
Revenue Recognition | Revenue Recognition . Revenue from the sale of products is recognized when both risk of loss and title have transferred to the customer, which in most cases coincides with shipment of the related products, and collection is reasonably assured. Revenue from conversion services is recognized when the performance of the service is complete. Invoiced shipping and handling costs are also accounted for as revenue. Customer claims, which are not material, are accounted for primarily as a reduction to gross sales after the matter has been researched and an acceptable resolution has been reached. The following table presents net sales by product line: For the years ended December 31, 2015 2014 2013 (dollars in thousands) Stainless steel $ 135,945 $ 159,799 $ 137,383 High-strength low alloy steel 16,045 16,853 17,894 Tool steel 16,197 16,680 18,112 High-temperature alloy steel 7,557 6,295 4,277 Conversion services and other sales 4,916 5,933 3,102 Total net sales $ 180,660 $ 205,560 $ 180,768 |
Income Taxes | Income Taxes . Deferred income taxes are provided for unused tax credits earned and the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. We use the liability method to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid. Valuation allowances are provided for a deferred tax asset when it is more likely than not that the asset will not be realized. Income tax penalties and interest are included in the provision for income tax expense. We evaluate the tax positions taken or expected to be taken in our tax returns. A tax position should only be recognized in the financial statements if we determine that it is more-likely-than-not that the tax position will be sustained upon examination by the tax authorities, based upon the technical merits of the position. For those tax positions that should be recognized, the measurement of a tax position is determined as being the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. We believe there are no material uncertain tax positions at December 31, 2015, 2014 and 2013 . We use the with-and-without method to account for excess tax benefits recognized as a result of the exercise of employee stock options. Under the with-and-without method, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to us, which are also subject to applicable limitations. |
Share-based Compensation Plans | Share-based Compensation Plans . We recognize compensation expense based on the grant-date fair value of the awards. The fair value of the stock option grants is estimated on the date of grant using the Black-Scholes option-pricing model, and is recognized ratably over the service/vesting period of the award. The fair value of time-based restricted stock grants is calculated using the market value of the stock on the date of issuance, and is recognized ratably over the service/vesting period of the award. |
Net (Loss) Income per Common Share | Net (Loss) Income per Common Share . Net (loss) income per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income, adjusted to include interest expense (tax effected) for the convertible notes by the weighted-average number of common shares outstanding plus all dilutive potential common shares outstanding during the period. All shares that were issuable under our outstanding convertible notes were considered outstanding for our diluted net income per common share computation, using the “if converted” method of accounting from the date of issuance. |
Statement of Comprehensive Income | Statement of Comprehensive Income. During the years ended December 31, 2015, 2014 and 2013, there were no comprehensive income items other than net income (loss); therefore, a separate consolidated Statement of Comprehensive Income was excluded from the consolidated financial statements. |
Treasury Stock | Treasury Stock. We account for treasury stock under the cost method and include such shares as a reduction of total stockholders’ equity. |
Financial Instruments | Financial Instruments. Financial instruments held by us include cash, accounts receivable, accounts payable and long-term debt. The carrying value of cash, accounts receivable and accounts payable is considered to be representative of fair value because of the short maturity of these instruments. Refer to Note 5 for fair value disclosures of our financial instruments. |
Segment Reporting | Segment Reporting. Our operating facilities are integrated, and therefore our chief operating decision maker (“CODM”) views the Company as one business unit. Our CODM sets performance goals, assesses performance and makes decisions about resource allocations on a consolidated basis. As a result of these factors, as well as the nature of the financial information available which is reviewed by our CODM, we maintain one reportable segment. |
Reclassifications | Reclassifications. Certain prior year amounts have been reclassified to conform to the 2015 presentation. |
New Accounting Pronouncement | Recently Adopted Accounting Pronouncement In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. We adopted ASU 2015-17 in 2015. The update resulted in the classification of all deferred tax assets and liabilities as noncurrent on the consolidated balance sheet. Recently Issued Accounting Pronouncement In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606) which was amended, in August 2015, by ASU 2015-14 “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. This topic converges the guidance within U.S. GAAP and International Financial Reporting Standards and supersedes Accounting Standards Codification 605, Revenue Recognition. The new standard requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We are currently evaluating the impact that this standard will have on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory” ("ASU 2015-11") to simplify the guidance on the subsequent measurement of inventory, excluding inventory measured using last-in, first out or the retail inventory method. Under the new standard, inventory should be at the lower of cost and net realizable value. The new accounting guidance is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating the impact of the pending adoption of ASU 2015-11 on the Company's consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new guidance is effective for annual reporting periods beginning after December 15, 2015, including interim reporting periods within that reporting period, and early application is permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statements. |
Significant Accounting Polici21
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Schedule of Net Sales by Product Line | For the years ended December 31, 2015 2014 2013 (dollars in thousands) Stainless steel $ 135,945 $ 159,799 $ 137,383 High-strength low alloy steel 16,045 16,853 17,894 Tool steel 16,197 16,680 18,112 High-temperature alloy steel 7,557 6,295 4,277 Conversion services and other sales 4,916 5,933 3,102 Total net sales $ 180,660 $ 205,560 $ 180,768 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory [Abstract] | |
Major Classes of Inventory | December 31, 2015 2014 (dollars in thousands) Raw materials and starting stock $ 6,235 $ 8,943 Semi-finished and finished steel products 69,907 84,816 Operating materials 8,543 8,759 Gross inventory 84,685 102,518 Inventory reserves (1,312) (1,448) Total inventory, net $ 83,373 $ 101,070 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | December 31, 2015 2014 (dollars in thousands) Land and land improvements $ 7,377 $ 7,088 Buildings 47,712 45,434 Machinery and equipment 236,991 225,754 Construction in progress 8,580 12,833 Gross property, plant and equipment 300,660 291,109 Accumulated depreciation (107,155) (91,314) Property, plant and equipment, net $ 193,505 $ 199,795 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt [Abstract] | |
Schedule of Long-Term Debt | December 31, 2015 2014 (dollars in thousands) Term loan $ 12,500 $ 15,500 Revolving credit facility 44,350 51,350 Convertible notes 20,000 20,000 Swing loan credit facility 287 25 77,137 86,875 Less: current portion of long-term debt (3,000) (3,000) Long-term debt $ 74,137 $ 83,875 |
Schedule of Maturities of Long-term Debt | (dollars in thousands) 2016 $ 3,000 2017 74,137 $ 77,137 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of Components of Provision (Benefit) for Income Taxes | For the years ended December 31, 2015 2014 2013 (dollars in thousands) Current (benefit) provision Federal $ (105) $ 312 $ 85 State 56 298 (6) Deferred (benefit) provision Federal (11,843) 1,941 (3,205) State (252) 598 622 (Benefit) provision for income taxes $ (12,144) $ 3,149 $ (2,504) |
Schedule of Effective Income Tax Rate Reconciliation | For the years ended December 31, 2015 2014 2013 Federal statutory tax rate 35.0 % 35.0 % 35.0 % Research and development tax credit 1.6 (2.9) 14.6 State government grants, net of federal tax impact - - 4.2 Valuation allowance, state government grants, net of federal impact - 8.2 (15.0) Domestic manufacturing deduction - - - State income taxes, net of federal impact 0.6 3.7 1.4 Other, net (0.2) (0.3) (2.1) Effective income tax rate 37.0 % 43.7 % 38.1 % |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2015 2014 (dollars in thousands) Noncurrent deferred income taxes: Federal and state tax carryforwards $ 22,495 $ 17,495 Inventory 1,196 3,136 Share-based compensation 3,545 3,300 Receivables 76 29 Accrued liabilities 299 396 Other 65 65 Total deferred tax assets $ 27,676 $ 24,421 Deferred tax liabilities: Property, plant and equipment $ 47,899 $ 56,354 Other 443 492 Total deferred tax liabilities $ 48,342 $ 56,846 Total noncurrent deferred income taxes $ 20,666 $ 32,425 |
Net (Loss) Income per Common 26
Net (Loss) Income per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Net (Loss) Income Per Common Share [Abstract] | |
Computation of Net (Loss) Income Per Common Share | For the years ended December 31, 2015 2014 2013 (dollars in thousands, except per share amounts) Numerator: Net (loss) income $ (20,672) $ 4,050 $ (4,062) Adjustment for interest expense on convertible notes - - - Net (loss) income, as adjusted $ (20,672) $ 4,050 $ (4,062) Denominator: Weighted average number of shares of common stock outstanding 7,069,954 7,031,539 6,950,976 Weighted average effect of dilutive stock options and other stock compensation - 84,892 - Weighted average effect of assumed conversion of convertible notes - - - Weighted average number of shares of common stock outstanding, as adjusted 7,069,954 7,116,431 6,950,976 Net (loss) income per common share: Basic $ (2.92) $ 0.58 $ (0.58) Diluted $ (2.92) $ 0.57 $ (0.58) |
Incentive Compensation Plans (T
Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Incentive Compensation Plans [Abstract] | |
Summary of Stock Option Activity | Non-vested stock Stock options options outstanding outstanding Weighted- Weighted- Weighted- average average average Number grant-date Number exercise contractual of shares fair value of shares price term (years) Outstanding at December 31, 2014 235,844 $ 16.34 775,675 $ 29.12 Stock options granted 192,400 6.99 192,400 13.02 Stock options exercised - - (17,500) 15.27 Stock options vested (59,469) 17.45 - - Stock options forfeited (69,575) 15.00 (108,825) 29.19 Outstanding at December 31, 2015 299,200 $ 10.40 841,750 $ 25.71 5.2 Exercisable at December 31, 2015 542,550 $ 29.84 4.6 |
Schedule of Assumptions Used to Determine Fair Value of Stock Options Granted | 2015 2014 2013 Risk-free interest rate 1.77% to 2.19% 1.79% to 2.13% 1.02% to 2.14% Dividend yield 0.0% 0.0% 0.0% Expected market price volatility 49% to 55% 49% to 57% 57% to 60% Weighted-average expected market price volatility 52.6% 52.6% 58.1% Expected term 5.6 to 7.5 years 5.6 to 7.5 years 5.4 to 7.5 years |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Retirement Plans [Abstract] | |
Schedule of Multiemployer Plans | Trusts employer identification Funding plan Company contributions to the Trust Pension number / PPA zone status pending / (dollars in thousands) Surcharge fund plan number 2015 2014 implemented 2015 2014 2013 imposed Trust 23-6648508 / 499 Green Green No $ 737 $ 758 $ 668 No |
Selected Quarterly Financial 29
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | First quarter Second quarter Third quarter Fourth quarter (dollars in thousands, except per share amounts) 2015 Data: Net sales $ 55,983 $ 49,610 $ 43,371 $ 31,696 Gross margin $ 5,710 $ 5,186 $ (410) $ (891) Goodwill impairment $ - $ - $ 20,265 $ - Operating income (loss) $ 1,016 $ 225 $ (25,896) $ (5,424) Provision (benefit) for income taxes $ 65 $ (173) $ (9,539) $ (2,497) Net income (loss) $ 125 $ (356) $ (17,045) $ (3,396) Net income (loss) per common share: Basic $ 0.02 $ (0.05) $ (2.41) $ (0.48) Diluted $ 0.02 $ (0.05) $ (2.41) $ (0.48) 2014 Data: Net sales $ 46,667 $ 52,309 $ 53,626 $ 52,958 Gross margin $ 6,060 $ 8,410 $ 8,643 $ 8,909 Operating income $ 1,432 $ 3,241 $ 3,123 $ 3,104 Provision for income taxes $ 1,072 $ 749 $ 775 $ 553 Net (loss) income $ (499) $ 1,449 $ 1,395 $ 1,705 Net (loss) income per common share: Basic $ (0.07) $ 0.21 $ 0.20 $ 0.24 Diluted $ (0.07) $ 0.20 $ 0.20 $ 0.24 |
Significant Accounting Polici30
Significant Accounting Policies (Concentration of Credit Risk, Accounts Receivable, and Allowance for Doubtful Accounts) (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)customer | Dec. 31, 2014USD ($)customer | Dec. 31, 2013USD ($)customer | |
Concentration Risk [Line Items] | |||
Bad debt expense | $ | $ 239 | $ 18 | $ 30 |
Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, number of customer | 1 | 1 | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 26.00% | ||
Concentration risk, number of customer | 2 | ||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 16.00% | 18.00% | |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 9.00% | 7.00% | 6.00% |
Sales Revenue, Net [Member] | Customer One [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Sales Revenue, Net [Member] | Customer Two [Member] | Customer Concentration Risk [Member] | Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 7.00% | 11.00% |
Significant Accounting Polici31
Significant Accounting Policies (Inventories) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Abstract] | |||
Net change in inventory reserves | $ (136) | $ (603) | $ 617 |
Amortization included in cost of products sold | $ 1,800 | $ 1,600 | $ 1,200 |
Significant Accounting Polici32
Significant Accounting Policies (Property, Plant and Equipment) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Cost of property repairs and maintenance | $ 16,900 | $ 16,500 | $ 14,800 |
Depreciation | 15,800 | 15,000 | 14,300 |
Cost of goods sold, depreciation | 15,400 | 14,600 | 14,100 |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Interest costs capitalized | $ 0 | $ 0 | $ 263 |
Minimum [Member] | Land and Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized maintenance cost, amortization period | 12 months | ||
Maximum [Member] | Land and Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 39 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 20 years |
Significant Accounting Polici33
Significant Accounting Policies (Intangible Assets) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 432 | $ 266 | $ 266 |
Non-compete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 255 | ||
North Jackson Facility [Member] | Non-compete Agreements [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived Intangible Assets Acquired | $ 1,300 |
Significant Accounting Polici34
Significant Accounting Policies (Deferred Financing Costs) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Abstract] | |||
Amortization of deferred financing costs | $ 566 | $ 644 | $ 444 |
Unamortized Debt Issuance Expense | $ 1,300 | $ 1,400 |
Significant Accounting Polici35
Significant Accounting Policies (Goodwill) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2015 | |
Non-cash goodwill impairment charge | $ 20,265 | $ 20,268 |
Income Approach Valuation Technique [Member] | ||
Fair value inputs, comparability adjustments | 30.00% | |
Market Approach Valuation Technique [Member] | ||
Fair value inputs, comparability adjustments | 70.00% |
Significant Accounting Polici36
Significant Accounting Policies (Stockholders’ Equity) (Narrative) (Details) | Dec. 31, 2015USD ($) |
Stock repurchase program, remaining authorized repurchase amount | $ 45,100 |
Maximum [Member] | |
Stock repurchase program, authorized amount | $ 315,000 |
Significant Accounting Polici37
Significant Accounting Policies (Schedule of Net Sales by Product Line) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product Information [Line Items] | |||||||||||
Net sales | $ 31,696 | $ 43,371 | $ 49,610 | $ 55,983 | $ 52,958 | $ 53,626 | $ 52,309 | $ 46,667 | $ 180,660 | $ 205,560 | $ 180,768 |
Stainless Steel [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | 135,945 | 159,799 | 137,383 | ||||||||
High-Strength Low Alloy Steel [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | 16,045 | 16,853 | 17,894 | ||||||||
Tool Steel [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | 16,197 | 16,680 | 18,112 | ||||||||
High-Temperature Alloy Steel [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | 7,557 | 6,295 | 4,277 | ||||||||
Conversion Services and Other Sales [Member] | |||||||||||
Product Information [Line Items] | |||||||||||
Net sales | $ 4,916 | $ 5,933 | $ 3,102 |
Inventory (Major Classes of Inv
Inventory (Major Classes of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Abstract] | ||
Raw materials and starting stock | $ 6,235 | $ 8,943 |
Semi-finished and finished steel products | 69,907 | 84,816 |
Operating materials | 8,543 | 8,759 |
Gross inventory | 84,685 | 102,518 |
Inventory reserves | (1,312) | (1,448) |
Total inventory, net | $ 83,373 | $ 101,070 |
Property, Plant and Equipment39
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 300,660 | $ 291,109 |
Accumulated depreciation | (107,155) | (91,314) |
Property, plant and equipment, net | 193,505 | 199,795 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 7,377 | 7,088 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 47,712 | 45,434 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 236,991 | 225,754 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 8,580 | $ 12,833 |
Long-Term Debt (Credit Facility
Long-Term Debt (Credit Facility) (Narrative) (Details) | Feb. 02, 2016USD ($)shares | Jan. 21, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Line of Credit Facility [Line Items] | ||||
Deferred financing fees | $ 1,300,000 | |||
Prior Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, maturity date | Mar. 31, 2017 | |||
Subsequent Event [Member] | Directors And Officers [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Shares of common stock issued | shares | 73,207 | |||
Aggregate purchase price of common stock issued | $ 500,003.81 | |||
LIBOR [Member] | Prior Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, interest rate at period end | 2.18% | |||
March 31, 2016 [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Write off of deferred debt financing fees | $ 800,000 | |||
PNC Bank [Member] | December 31, 2016 [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Minimum fixed charge coverage ratio | 1.10 | |||
Revolving Credit Facility [Member] | Prior Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum secured borrowing capacity | $ 105,000,000 | $ 105,000,000 | ||
Commitment fee on the daily unused portion of the Revolver | 0.25% | |||
Revolving Credit Facility [Member] | PNC Bank [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum secured borrowing capacity | $ 65,000,000 | |||
Commitment fee on the daily unused portion of the Revolver | 0.25% | |||
Letter of Credit [Member] | PNC Bank [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum secured borrowing capacity | $ 10,000,000 | |||
Term Loan [Member] | Prior Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum secured borrowing capacity | $ 20,000,000 | $ 20,000,000 | ||
Quarterly term loan payments | $ 750,000 | |||
Debt instrument, maturity date | Mar. 19, 2017 | |||
Debt instrument payment start date | Jul. 1, 2013 | |||
Term Loan [Member] | PNC Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument payment start date | Apr. 1, 2016 | |||
Term Loan [Member] | PNC Bank [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Quarterly term loan payments | 1,100,000 | |||
Term Loan [Member] | Revolving Credit Facility [Member] | PNC Bank [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum secured borrowing capacity | 30,000,000 | |||
Swing Loan Credit Facility [Member] | PNC Bank [Member] | Subsequent Event [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum secured borrowing capacity | $ 5,000,000 | |||
Swing Loan Credit Facility [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Prior Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum secured borrowing capacity | $ 7,000,000 |
Long-Term Debt (Convertible Not
Long-Term Debt (Convertible Notes) (Narrative) (Details) | Jan. 21, 2016USD ($)$ / shares | Dec. 31, 2015item$ / shares | Dec. 31, 2014$ / shares | Aug. 31, 2011USD ($) |
Debt Instrument [Line Items] | ||||
Common stock, par value | $ / shares | $ 0.001 | $ 0.001 | ||
Convertible Notes [Member] | North Jackson Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 20,000,000 | |||
Debt instrument interest rate | 4.00% | |||
Conversion stock price | $ / shares | $ 47.1675 | |||
Stock price trigger for convertible note prepay option | 140.00% | |||
Debt instrument, maturity date | Aug. 17, 2017 | |||
Debt instrument convertible threshold consecutive trading days | 30 days | |||
Convertible Notes [Member] | North Jackson Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument convertible threshold trading days | item | 20 | |||
Convertible Notes [Member] | Gorbert Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Mar. 17, 2019 | |||
Subsequent Event [Member] | Gorbert Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 20,000,000 | |||
Subsequent Event [Member] | Convertible Notes [Member] | Gorbert Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | 20,000,000 | |||
Debt instrument principal payment | 1,000,000 | |||
Subsequent Event [Member] | Convertible Notes [Member] | If Maturity Date Extend to March 17, 2020 [Member] | Gorbert Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal payment on March 17, 2019 | 2,000,000 | |||
Subsequent Event [Member] | Convertible Notes [Member] | If Maturity Date Extend to March 17, 2021 [Member] | Gorbert Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal payment on March 17, 2020 | $ 2,000,000 | |||
Subsequent Event [Member] | Convertible Notes [Member] | Through and Including August 17, 2016 [Member] | Gorbert Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 4.00% | |||
Subsequent Event [Member] | Convertible Notes [Member] | August 18, 2016 Through and Including August 17, 2017 [Member] | Gorbert Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 5.00% | |||
Subsequent Event [Member] | Convertible Notes [Member] | From and After August 18, 2017 [Member] | Gorbert Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument interest rate | 6.00% | |||
Subsequent Event [Member] | Convertible Notes [Member] | If holder elects to convert on or prior to August 17, 2017 [Member] | Gorbert Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Conversion stock price | $ / shares | $ 47.1675 | |||
Debt instrument integral multiple convertible principal amount | $ 100,000 | |||
Debt instrument, initial conversion rate per $1000 principal amount | 21.2 | |||
Principal amount used to convert convertible notes | $ 1,000 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total debt | $ 77,137 | $ 86,875 |
Less: current portion of long-term debt | (3,000) | (3,000) |
Long-term debt | 74,137 | 83,875 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 12,500 | 15,500 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 44,350 | 51,350 |
Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 20,000 | 20,000 |
Swing Loan Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 287 | $ 25 |
Long-Term Debt (Schedule of Mat
Long-Term Debt (Schedule of Maturities of Long-term Debt) (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long-Term Debt [Abstract] | ||
2,016 | $ 3,000 | |
2,017 | 74,137 | |
Total debt | $ 77,137 | $ 86,875 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 2 [Member] | ||
Notes payable, fair value disclosure | $ 19.2 | $ 20.5 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | ||||
Effective income tax rate continuing operations | 37.00% | 43.70% | 38.10% | |
Tax benefit for research and development tax credits | $ 430 | |||
Net operating loss carryforwards | 54,200 | $ 54,200 | $ 41,500 | |
Income tax examination description | We are routinely under audit by federal or state authorities. Our federal tax returns are subject to examination by the IRS for tax years after 2011. We are subject to examination by state tax jurisdictions for tax years after 2011. | |||
State and Local Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 9,000 | $ 9,000 | 8,100 | |
Tax credit carryforward amount | 265 | $ 265 | 267 | |
State and Local Jurisdiction [Member] | NEW YORK | ||||
Income Taxes [Line Items] | ||||
Effective income tax rate continuing operations | 0.00% | |||
Research Tax Credit Carryforward [Member] | ||||
Income Taxes [Line Items] | ||||
Tax credit carryforward amount | 2,300 | $ 2,300 | 1,700 | |
Alternative minimum tax credit carryforwards | $ 489 | $ 489 | $ 597 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Provision (Benefit) for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||||||||||
Current (benefit) provision, Federal | $ (105) | $ 312 | $ 85 | ||||||||
Current (benefit) provision, State | 56 | 298 | (6) | ||||||||
Deferred (benefit) provision, Federal | (11,843) | 1,941 | (3,205) | ||||||||
Deferred (benefit) provision, State | (252) | 598 | 622 | ||||||||
(Benefit) provision for income taxes | $ (2,497) | $ (9,539) | $ (173) | $ 65 | $ 553 | $ 775 | $ 749 | $ 1,072 | $ (12,144) | $ 3,149 | $ (2,504) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | |||
Federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Research and development tax credit | 1.60% | (2.90%) | 14.60% |
State government grants, net of federal tax impact | 4.20% | ||
Valuation allowance, state government grants, net of federal impact | 8.20% | (15.00%) | |
State income taxes, net of federal impact | 0.60% | 3.70% | 1.40% |
Other, net | (0.20%) | (0.30%) | (2.10%) |
Effective income tax rate | 37.00% | 43.70% | 38.10% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Abstract] | ||
Federal and state tax carryforwards | $ 22,495 | $ 17,495 |
Inventory | 1,196 | 3,136 |
Share-based compensation | 3,545 | 3,300 |
Receivables | 76 | 29 |
Accrued liabilities | 299 | 396 |
Other | 65 | 65 |
Total deferred tax assets | 27,676 | 24,421 |
Property, plant and equipment | 47,899 | 56,354 |
Other | 443 | 492 |
Total deferred tax liabilities | 48,342 | 56,846 |
Total noncurrent deferred income taxes | $ 20,666 | $ 32,425 |
Net (Loss) Income per Common 49
Net (Loss) Income per Common Share (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Compensation Plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 635,200 | 440,300 | 353,550 |
Average price of anti-dilutive options outstanding | $ 30.67 | $ 35.20 | $ 36.36 |
Options And Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 21,774 | 118,814 | |
Convertible Debt Securities [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 428,140 | 428,140 | 428,140 |
Net (Loss) Income per Common 50
Net (Loss) Income per Common Share (Computation of Net (Loss) Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||||||||||
Net (loss) income | $ (3,396) | $ (17,045) | $ (356) | $ 125 | $ 1,705 | $ 1,395 | $ 1,449 | $ (499) | $ (20,672) | $ 4,050 | $ (4,062) |
Adjustment for interest expense on convertible notes | |||||||||||
Net (loss) income, as adjusted | $ (20,672) | $ 4,050 | $ (4,062) | ||||||||
Denominator: | |||||||||||
Weighted average number of shares of common stock outstanding | 7,069,954 | 7,031,539 | 6,950,976 | ||||||||
Weighted average effect of dilutive stock options and other stock compensation | 84,892 | ||||||||||
Weighted average number of shares of common stock outstanding, as adjusted | 7,069,954 | 7,116,431 | 6,950,976 | ||||||||
Net (loss) income per common share: | |||||||||||
Net (loss) income per common share - Basic | $ (0.48) | $ (2.41) | $ (0.05) | $ 0.02 | $ 0.24 | $ 0.20 | $ 0.21 | $ (0.07) | $ (2.92) | $ 0.58 | $ (0.58) |
Net (loss) income per common share - Diluted | $ (0.48) | $ (2.41) | $ (0.05) | $ 0.02 | $ 0.24 | $ 0.20 | $ 0.20 | $ (0.07) | $ (2.92) | $ 0.57 | $ (0.58) |
Incentive Compensation Plans (S
Incentive Compensation Plans (Stock Options) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 2,150,000 | ||
Number of shares available for grant | 363,993 | ||
Weighted-average grant-date fair value of stock options granted | $ 6.99 | ||
Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Award expiration period | 10 years | ||
Proceeds from stock option exercises | $ 267 | $ 764 | $ 848 |
Closing stock price | $ 9.29 | ||
Aggregate intrinsic value of outstanding stock options | $ 0 | ||
Aggregate intrinsic value of exercisable stock options | 0 | ||
Aggregate intrinsic value of stock options exercised | 129 | 841 | 929 |
Total fair value of stock option awards vested | 1,000 | 1,700 | 1,400 |
Share-based compensation expense | 1,500 | 1,700 | 1,500 |
Unrecognized share-based compensation expense | $ 2,700 | ||
Unrecognized share-based compensation expense, weighted-average period of recognition | 3 years | ||
Tax benefit for exercise of stock options | $ 0 | $ 0 | $ 0 |
Weighted-average grant-date fair value of stock options granted | $ 6.99 | $ 14.39 | $ 18.02 |
Incentive Compensation Plans (R
Incentive Compensation Plans (Restricted Stock) (Narrative) (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, time-based shares | 35,000 | |||
Market value of stock on date of issuance | $ 35.26 | |||
Forfeited, shares | 3,000 | |||
Share-based compensation expense | $ 412 | $ 342 | $ 339 |
Incentive Compensation Plans (E
Incentive Compensation Plans (Employee Stock Purchase Plan) (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized | 2,150,000 |
Stock Compensation Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized | 200,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Cumulative Shares Issued under Plan | 178,636 |
Stock Compensation Plan | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 100 |
Incentive Compensation Plans (C
Incentive Compensation Plans (Cash Incentive Plan) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Accrued employment costs | $ 3,256 | $ 6,011 | |
Cash Incentive Plans [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Other Labor-related Expenses | 1,000 | 4,400 | $ 1,000 |
Accrued employment costs | 608 | 3,300 | |
Cash Incentive Plans [Member] | Cost of Sales [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Other Labor-related Expenses | $ 404 | $ 1,800 | $ 576 |
Incentive Compensation Plans 55
Incentive Compensation Plans (Summary of Stock Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Non-vested stock options outstanding, Number of shares | |||
Non-vested stock options outstanding, beginning balance | 235,844 | ||
Stock options granted | 192,400 | ||
Stock options vested | (59,469) | ||
Stock options forfeited | (69,575) | ||
Non-vested stock options outstanding, ending balance | 299,200 | 235,844 | |
Non-vested stock options outstanding, Weighted-average grant-date fair value | |||
Non-vested stock options outstanding, Weighted-average grant-date fair value, beginning balance | $ 16.34 | ||
Stock options granted | 6.99 | ||
Stock options vested | 17.45 | ||
Stock options forfeited | 15 | ||
Non-vested stock options outstanding, Weighted-average grant-date fair value, ending balance | $ 10.40 | $ 16.34 | |
Stock options outstanding, Number of shares | |||
Stock options outstanding, beginning balance | 775,675 | ||
Stock options granted | 192,400 | ||
Stock options exercised | (17,500) | ||
Stock options forfeited | (108,825) | ||
Stock options outstanding, ending balance | 841,750 | 775,675 | |
Stock options outstanding, Weighted-average exercise price | |||
Stock options outstanding, weighted-average exercise price, beginning balance | $ 29.12 | ||
Stock options granted | 13.02 | ||
Stock options exercised | 15.27 | ||
Stock options forfeited | 29.19 | ||
Stock options outstanding, weighted-average exercise price, ending balance | $ 25.71 | $ 29.12 | |
Stock options outstanding, weighted-average remaining contractual life | 5 years 2 months 12 days | ||
Stock options exercisable at end of period | 542,550 | ||
Stock options exercisable, weighted-average exercise price at end of period | $ 29.84 | ||
Stock options exercisable, weighted-average remaining contractual life | 4 years 7 months 6 days | ||
Employee Stock Option [Member] | |||
Non-vested stock options outstanding, Weighted-average grant-date fair value | |||
Stock options granted | $ 6.99 | $ 14.39 | $ 18.02 |
Incentive Compensation Plans 56
Incentive Compensation Plans (Schedule of Assumptions Used to Determine Fair Value of Stock Options Granted) (Details) - Employee Stock Option [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 1.77% | 1.79% | 1.02% |
Risk-free interest rate, maximum | 2.19% | 2.13% | 2.14% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected market price volatility, minimum | 49.00% | 49.00% | 57.00% |
Expected market price volatility, maximum | 55.00% | 57.00% | 60.00% |
Weighted-average expected market price volatility | 52.60% | 52.60% | 58.10% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 5 years 7 months 6 days | 5 years 7 months 6 days | 5 years 4 months 24 days |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 7 years 6 months | 7 years 6 months | 7 years 6 months |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Multiemployer Plans [Line Items] | |||
Retirement plan expense | $ 1.6 | $ 1.6 | $ 1.5 |
Steelworkers Pension Trust [Member] | Maximum [Member] | |||
Multiemployer Plans [Line Items] | |||
Company contributions as a percentage of all contributions | 5.00% |
Retirement Plans (Schedule of M
Retirement Plans (Schedule of Multiemployer Plans) (Details) - Steelworkers Pension Trust [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Multiemployer Plans [Line Items] | |||
Plan number | 499 | ||
PPA zone status | Green | Green | |
Funding plan pending / implemented | No | ||
Company contributions to the Trust | $ 737 | $ 758 | $ 668 |
Surcharge imposed | No |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Commitments and Contingencies [Abstract] | |
Purchase obligations | $ 6.5 |
Purchase obligations due in 2016 | $ 5.9 |
Selected Quarterly Financial 60
Selected Quarterly Financial Data (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Selected Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 31,696 | $ 43,371 | $ 49,610 | $ 55,983 | $ 52,958 | $ 53,626 | $ 52,309 | $ 46,667 | $ 180,660 | $ 205,560 | $ 180,768 |
Gross margin | (891) | (410) | 5,186 | 5,710 | 8,909 | 8,643 | 8,410 | 6,060 | 9,595 | 32,022 | 13,880 |
Goodwill impairment | 20,265 | 20,268 | |||||||||
Operating income (loss) | (5,424) | (25,896) | 225 | 1,016 | 3,104 | 3,123 | 3,241 | 1,432 | (30,079) | 10,900 | (4,005) |
Provision (benefit) for income taxes | (2,497) | (9,539) | (173) | 65 | 553 | 775 | 749 | 1,072 | (12,144) | 3,149 | (2,504) |
Net income (loss) | $ (3,396) | $ (17,045) | $ (356) | $ 125 | $ 1,705 | $ 1,395 | $ 1,449 | $ (499) | $ (20,672) | $ 4,050 | $ (4,062) |
Net (loss) income per common share - Basic | $ (0.48) | $ (2.41) | $ (0.05) | $ 0.02 | $ 0.24 | $ 0.20 | $ 0.21 | $ (0.07) | $ (2.92) | $ 0.58 | $ (0.58) |
Net (loss) income per common share - Diluted | $ (0.48) | $ (2.41) | $ (0.05) | $ 0.02 | $ 0.24 | $ 0.20 | $ 0.20 | $ (0.07) | $ (2.92) | $ 0.57 | $ (0.58) |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) | Feb. 02, 2016 | Jan. 21, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | |||
Deferred financing fees | $ 1,300,000 | ||
Directors And Officers [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Shares of common stock issued | 73,207 | ||
Proceeds from issuance of common stock | $ 500,003.81 | ||
March 31, 2016 [Member] | |||
Subsequent Event [Line Items] | |||
Write off of deferred debt financing fees | $ 800,000 | ||
Gorbert Inc. [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Debt instrument, face amount | $ 20,000,000 | ||
Revolving Credit Facility [Member] | PNC Bank [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Line of credit facility maximum borrowing capacity | 65,000,000 | ||
Letter of Credit [Member] | PNC Bank [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Line of credit facility maximum borrowing capacity | 10,000,000 | ||
Term Loan [Member] | PNC Bank [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Debt instrument principal payment | 1,100,000 | ||
Term Loan [Member] | Revolving Credit Facility [Member] | PNC Bank [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Line of credit facility maximum borrowing capacity | 30,000,000 | ||
Swing Loan Credit Facility [Member] | PNC Bank [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Line of credit facility maximum borrowing capacity | 5,000,000 | ||
Convertible Notes [Member] | Gorbert Inc. [Member] | |||
Subsequent Event [Line Items] | |||
Debt instrument, maturity date | Mar. 17, 2019 | ||
Convertible Notes [Member] | Gorbert Inc. [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Debt instrument, face amount | 20,000,000 | ||
Debt instrument principal payment | $ 1,000,000 |
Valuation and Qualifying Acco62
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Allowance for Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of year | $ 17 | $ 84 | $ 1,837 | |
Charged to costs and expenses | 239 | 18 | 30 | |
Deductions / net charge offs | [1] | (7) | (85) | (1,783) |
Balance at end of year | 249 | 17 | 84 | |
Valuation Allowance of Deferred Tax Assets [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at beginning of year | $ 1,582 | 986 | ||
Charged to costs and expenses | 596 | |||
Balance at end of year | $ 1,582 | $ 1,582 | $ 986 | |
[1] | Represents write-off of bad debts net of recoveries |